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What am I doing wrong
Now my items are not bring in big money of course, but from what I see I am not making any money at all. It looks like I am in the hole with shipping fee's and selling costs. Does it just take time to build a cash flow or am I doing something wrong.
11 comments
evry1nositswindy
Mentor4 months agoA buy it now with an auction really doesn't mean much. Once a bid is made, that buy it now price goes away.
Start your auction at the lowest price you would find acceptable. If you wish to use free shipping, first take the price of the shipping, add your fees, and then how much you want for the item. Right now, the first item I looked at was .99 with a bid plus 5.77 shipping. Try 10.00 free shipping.
I use free shipping for everything. Anything under 10.00 is pointless. Even when I sell a single valentine, the price is 10.97 with free shipping (I always add .97, not sure why). This price includes tracking, which protects you as a seller. It also allows the buyer to see where the item is and when it will be delivered.
wooden_flower
Mentor4 months ago@fish-on-73
You need to determine your minimum selling price that you need to make a profit.
When you sell an item for $.99 with $5 shipping, you are never going to make a profit. Assuming you do not pay extra to promote your item, your fees on such a sale would be at least $1.12. (13.6% on the total + $.30). The fee would be higher if the buyer’s state charges tax on the shipping.
fish-on-73
OP4 months agoThanks for your input I figured this to be the issue. The old method was to auction low to bring the winners price up high. The issue is the shipping cost which bring the overall charge up in the end. I will probably start doing free shipping as most of my items will just fit into an envelope. I understand that this will then hold my profit for 30 days, but it will be better in the long run.
Thanks again for the input, I knew this but, always good to hear it from others.
wooden_flower
Mentor4 months ago@fish-on-73
Always start auctions at the lowest price you will be happy to sell at. Someone who wants the item be not be put off by a price of $1.99 instead of $.99.
Be careful using first class letter envelope shipping. Letters cannot have any bumps or lumps - they must be uniformly flat no thicker than 1/4”. They must also be flexible enough to bend around rollers something like a soda can.
You can pay extra for ‘non machinable’ letters, and there is a larger class of first class called a flat that can go up to 3/4”, but these services will add to your cost.
Offering free shipping with a first class stamp if the item qualifies, you are not going to make a profit selling items for $1. Even assuming the product costs you 0, the stamp is $.78, the fees on the $1 will be $.44 or $.45. This would leave you 22 or 23 cents in the hole.
And do remember that with no tracking, you will have to refund any buyer that says not received.
fish-on-73
OP4 months agoYa that last statement is a concern. The items I am selling will fit in to that envelope criteria perfectly. The fees are the issue. I just hope in time I build a reputation that will lead to more views and higher auction prices.
wooden_flower
Mentor4 months ago@fish-on-73
Have you considered selling at fixed prices instead of auctions? Have you researched prices on similar items?
I am not familiar with the world of fishing lures, but I would try a few at fixed prices similar to recently sold items just to see what happens.
fish-on-73
OP4 months agoI will do just that. I had a set of lures I listed for $1 dollar and they ended at $19 so that worked out well for me. For the hand tied flies I need them to get seen but it starting to happen and I am sure there will be more bidding. Of course I did have one set purchased for $6 that was also a big win for me. I just need more of this to happen. Steady the course it will work out soon I hope.
fish-on-73
OP4 months agoHere is a question is there any extra hidden fee if I auction the item off with a buy at this price option? Also is there any extra fee's for relisting the item multiple times before the item is purchased?
wooden_flower
Mentor4 months ago@fish-on-73
There is no extra fee for adding a buy it now price to an auction. I would also try a few with just the buy it now price.
You get 250 insertions each month - they can be auctions or fixed price items. Fixed price items use 1 insertion per month. They are called good ‘til cancelled because they keep renewing automatically until they sell or until you manually end them.
Auctions are different - as you know, they run for a set number of days, then end. Being a new seller, you are probably getting 8 free automatic relistings for each auction. So when you start a new auction, you use 1 of the 250 insertions, but the free listings do not use any insertions.
The free relistings stop at some point, when you are considered an established seller. Then they will use an insertion each time you run it.
fish-on-73
OP4 months agoThanks again
wooden_flower
Mentor4 months ago@fish-on-73
You are very welcome 😀